US Gas tax suspension Another Republican smoke and mirrors for the Middle class
Ok lets have an open discussion Republican Nominee John McCain wants to lead off his economic policy by suspending the Federal Gas tax. He says it’s going to provide real tax relief for the working middle class.
Let see that is 0.184 Cents per Gallon so instead of it costing you $4.00 per gallon it will now hopefully because producers may jack up the price $3.816 per gallon just about what a gallon cost you on May 15, 2008
If you drive a Chevy Impala with an 18 gallon tank and you fill up once a week because you can’t afford $3.81 any better then the $4.00 a gallon
you save $3.31 a week
for 10 weeks you will save $33.10.
Wow not much meat on the bone their for the dog to fight you for, yet John McCain thinks this is going to keep the peasants from revolting and allowing them to put a steak on the table 4 nights a week. He must not do the shopping in his house (lol) I can not think of a Presidential Candidates Policy that insulted Middle Class Americans more then this pile of crude.
If you think .18 cents is going to solve all your problems for 10 weeks your just not part of the middle class. If your driving the big SUV that has a 30 gallon tank and you have to fill up twice a week guess what you will not even save a months auto insurance payment in Massachusetts for that behemoth. And what will you do in September?????
Here is a real Economics lesson for John McCain. If you want real relief from $4.00 a gallon for gas, lets talk real tax relief. How about a wind fall profits on all American pumped crude Oil 50% of the cost of a barrel of crude oil. Today’s close was $136.00 so we would capture a tax of $68.00 a barrel. Now we would reguire Oil companies to pump from all wells that were in production at any time from January 1, 2008 through June 30, 2008 unless the well runs dry. In 2005 the US pumped 8.322 million bbl/day and the latest figures suggest we would be up over 9 Million a day by 2010. This tax would then generate a daily average tax of $565,896,000.00 million a day. Now that’s no small potatoes , looks like we may get that $33.00 up just a bit. So how will this help the Middle class? Look at the number one more time and remember that’s PER DAY and then lets think how about; health insurance for all at no cost to any household of 4 making less then $100,000 net per year Costs would scale up 10% for every $10,000 net you make over that. So at $200,000.00 a year you would pay the full premium on a family of four.
How about the federal government takes over the cost of construction of alternative electricity with a program goal in 5 years that will cut our annual consumption of Fossil fuels for electric generation in half that would put a real dent in global warming.
Lets not forget they eliminate forever the gas tax per gallon.
But I am not all about a gimmy for the middle class, the old bible story comes to mind, if you give a beggar a fish he eats for the day if you teach him to fish eats for a life time. Lets see some real dollars go back into corporations for the exclusive use in Research and Development. Innovation has been a key to the success of our Capitalistic Economy for more then 2 centuries we have come to rely on it to improve and extend our lives and to understand the science of us and this world while making improvekments in our life style, at no time has real innovation lacked significant contribution to our economy, then in the last decade. The Internet is old hat the PC is going on 30 years old the Cell phone and wireless communication is over a decade and a half old. Automobiles have gotten safer and cleaner yet gas mileage is little better then what it was in the late 70’s. Lets face it with the exception of Pharmaceuticals our economy is flat. It’s not producing the new technology needed to improve productivity or to spur the next buying wave of must have. So here is the pot of gold, distribute it as you think it will do the most good. Now for you who want to poke holes and make fun at this go and be happy with your $33.00 treat the family to MacDonalds and keep the economy zipping along. If your not satisfied but your worried about the oil industry struggling look at what the oil producers lose and keep Oil closed at $136 a barrel less 50% leaves them with a $68 dollar a barrel profit remember when 18 months ago $68 was outrageous we all said it won’t go higher well look again. I think they can live on that especially considering the cost of 90 % of the wells currently producing is approximately 17-19$ a barrel. I think they are left with more then enough profit for them to buy into the next energy market when it comes along.
Oh yes and what happens if they just jack up the price of oil to make up for it how about this for every dollar it escalates the tax goes up .60 cents when oil tops 150.00 a barrel the tax goes up .75 a of everydollar over 150.00 and if it goes to $200.00 a barrel the tax is 50% on the first 138 dollars then .80 on every dollar over per barrel Imagine in one year the Federal government will take in over $207 billion in new tax revenue for the year if the price stopped climbing today.
Now for hedge funds and oil speculators all profits in excess of 15% will be taxed at the windfall profits rate of 50% as well.
If you think your going to make out with the McCain plan of a 10 week tax cut then please vote for him. For me I’m not selling my vote that cheaply I want real tax relief. I am tired of paying for King Georges Cronies to go out and buy a new Ferrari while I’m hoping for a raise just to pay this week’s grocery bill.
Now the Windfalls Profit tax goes away when Oil drops to under $70.00 a barrel and stays under the cost of living index per year every year so this year it could grow 3%. I suspect that by the time they get the costs under control we will see the green economy matured and replacing with new job growth and new profits the money eventually lost with the eclipse of the Windfalls profits tax.
As Usual just my opinions